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SBA Revises OCA Regulations on 504 and 7(a) Loan Program to Expand Access to Loan Programs, Streamline the Application Process and Ensure Program Integrity through Enhanced Oversight

Summary of Proposed OCA regulations changes for 504 and 7(a) programs
SBA has proposed to revise OCA regulations for the 504 and 7(a) loan programs. The goal of these regulation changes is to expand the accessibility of SBA loan programs, to streamline the loan application process and to ensure program integrity through effective, proper oversight.
The SBA proposed rule resulted from extensive consultations with lenders and borrowers to identify the greatest challenges they face and find ways to reduce those barriers and make loans more accessible while reducing waste, fraud and abuse.
Among the proposed changes are:
• Eliminating the personal resource test
• Revising the rule on affiliation
• Eliminating the nine-month rule for the 504 loan program
• Increasing accountability of the CDCs’ Board of Directors
• Removing unnecessary CDC operational requirements, and
• Other provisions to refocus CDC operational and
organizational requirements